By Adedapo Adesanya
Nigeria and other African countries have been tasked with embracing the clean energy transition to solve energy inequality by leveraging the African region’s enormous renewable energy potential.
This call was made by energy, utilities, and resources experts in one of the world’s top consultancy firms, PricewaterhouseCoopers (PwC) at a media call to launch the Africa Energy Review 2023 Report on Monday.
According to Mr Andries Rossow, PwC’s Africa Energy, Utilities, and Resources Leader, Africa is a net exporter of energy with more potential due to the diversity of the continent’s energy portfolio but despite this, the continent suffers from chronic underinvestment.
“Africa received only a small fraction of global energy investment with about 0.5 per cent directed towards transmission and distribution to energy infrastructure networks,” he said.
He added that it was imperative that investment blockages are identified and addressed, with a proper public and private partnership paramount to help the continent tap into its under-prioritized energy structure.
He said that given the energy poverty levels on the continent, there is a crucial need to develop fossil fuel energy resources that are geared towards its economic development needs. This can be achieved by tapping the use of sustainable resources like lithium, copper, and cobalt among others.
“As a net exporter of energy, the continent is well-positioned to profit from development in clean energy.”
On his part, Mr Pedro Omontuemhen, PwC Africa Oil and Gas Lead, for West Africa, the chances to catch up with North Africa which has proximity to Europe’s energy needs, remains untapped.
He examined that the region, which includes Nigeria and other new players like Senegal and Mauritania, has huge potential for investment and growth, adding that it could enjoy the perks of being a net exporter of energy.
In Nigeria’s case, he said that there needs to be a crucial tackling to issues of oil theft, which according to him has become a profitable venture that is telling on the country.
For Central Africa, he said the region which is heavily impacted by Africa’s second-largest crude producer, Angola, faces losing impact as it lacks fresh finds among depleting resources while limiting Liquified Natural Gas (LNG) export growth.
He tasked countries in the region which has faced coups in Gabon and political instability risk in Cameroon on the need for renewable investment with a particular focus on hydropotential.
For Mr Roelof van Huyssteen, Energy Regulation Expert, for East Africa, advancements in Mozambique, Tanzania, Kenya, and Uganda are indicators to act quickly with opportunities for LNG, geothermal, and oil while for Southern Africa, it is a new frontier market that should address old infrastructure challenges and work on collaboration.
As African countries face the challenge of how to balance energy security, climate change, and sustainable development objectives, the investment into Africa’s renewables, oil and gas is pivotal to its growth as domestic and international energy market demands can be met through its resources.
Modupe Gbadeyanka